Cost of moving home DOUBLES in a decade: How much will YOU pay?

Cost of moving home DOUBLES in a decade: How much will YOU pay?
By: dailymail Posted On: November 18, 2024 View: 84

  • Stamp duty threshold changes next year mean the cost of moving will rise 

The cost of moving home has more than doubled in the last decade, data seen by This is Money shows - and stamp duty rises next year will see it soar even further. 

In 2014 the cost of moving, including surveys, legal fees, removals and stamp duty, was around £6,534. 

But fast-forward to the present day and the figure is just shy of £14,000. 

For first-time buyers, the average cost of moving is £2,186, according to the data from Reallymoving. It is lower because they have no selling costs, and at the moment they usually pay no stamp duty. 

Buyers and sellers are responsible for different fees. Buyers, for example, are responsible for stamp duty and survey costs, while sellers deal with estate agency fees. 

Factoring in all the different fees, Reallymoving claims movers can expect to pay £13,978 upfront. 

Costly: Data from Reallymoving seen by This is Money reveals the cost of moving home

Movers in London typically fork out £30,048, meaning they are paying more than twice the national average. 

This is largely due to considerably higher average property prices in the capital, which drives up stamp duty and estate agent costs which are based on a percentage of the sale price. 

The North East of England is the cheapest location to move home, with average move costs coming in at around £5,492 - less than a fifth of the cost in London. 

In Yorkshire and the Humber, moving costs are also on the lower side at around £8,225.  

Rob Houghton, founder and chief executive of Reallymoving, told This is Money: 'Raising almost £14,000 to finance a home move is a major challenge for many people, especially with the cost of living so high, making it even harder to save.

'We've seen an increase in the proportion of first-time buyer activity in the last few weeks as people accelerate plans to move to take advantage of lower stamp duty bills before they rise next spring, but the window is still too tight for many, so it's wise to budget for higher stamp duty costs just in case.' 

For all but first-time buyers, the largest proportion of moving fees are shelled out on stamp duty costs, which, on average for a £375,000 property, come in at £6,250. 

Estate agency fees are generally around £4,544. Conveyancing costs normally come in at just over £2,000. 

For first-time buyers, conveyancing fees typically reach £1,316, while survey and removal costs are roughly £425 and £445 respectively. 

August is typically the most popular month to move, while January and February are the least popular.

Cost of moving set to reach record high      

In the Autumn Budget, Rachel Reeves failed to extend temporary changes to stamp duty thresholds. 

On 1 April 2025, the temporary higher threshold at which stamp duty is payable, currently £250,000, will revert back to £125,000.

On average, in England the average stamp duty bill will increase by £2,500 from £6,250 to £8,750, pushing the total cost of moving to a record high of £16,478, Reallymoving said.  

The price at which stamp duty starts to be charged will revert back to £300,000 for first-time buyers, from its current level of £425,000.

Reallymoving said: 'The proportion of first-time buyers paying stamp duty will more than double from 17 per cent currently to 39 per cent when the Government reinstates the £300,000 threshold on 1st April 2025. 

'This presents a significant additional upfront cost at a time when first-time buyers are already grappling with high house prices and mortgage rates – as well as extortionate rents which make it harder than ever to save a deposit.'

How to find a new mortgage

Borrowers who need a mortgage because their current fixed rate deal is ending, or they are buying a home, should explore their options as soon as possible.

Quick mortgage finder links with This is Money's partner L&C

> Mortgage rates calculator

> Find the right mortgage for you 

What if I need to remortgage? 

Borrowers should compare rates, speak to a mortgage broker and be prepared to act.

Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it.

Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying expensive arrangement fees.

Keep in mind that by doing this and not clearing the fee on completion, interest will be paid on the fee amount over the entire term of the loan, so this may not be the best option for everyone. 

What if I am buying a home? 

Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be. 

Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people's borrowing ability and buying power.

How to compare mortgage costs 

The best way to compare mortgage costs and find the right deal for you is to speak to a broker.

This is Money has a long-standing partnership with fee-free broker L&C, to provide you with fee-free expert mortgage advice.

Interested in seeing today’s best mortgage rates? Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs.

If you’re ready to find your next mortgage, why not use L&C’s online Mortgage Finder. It will search 1,000’s of deals from more than 90 different lenders to discover the best deal for you.

> Find your best mortgage deal with This is Money and L&C

Be aware that rates can change quickly, however, and so if you need a mortgage or want to compare rates, speak to L&C as soon as possible, so they can help you find the right mortgage for you. 

Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage 

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